S&P 500 Price Forecast – S&P 500 Continues to Grind Higher

US Stock Market Forecast Video for 14.07.23

S&P 500 Technical Analysis

The S&P 500 has rallied a bit during the trading session on Thursday, as we have seen PPI numbers come in cooler than anticipated. That being said, the market is likely to continue to see a lot of noisy upward momentum, as it appears that inflation is actually starting to cool off finally in the United States. By breaking above the 4500 level, that signifies that the next leg higher might be starting. After all, one of the biggest concerns that traders around the world have had with the US economy has been inflation, and of course the reaction that the Federal Reserve will have. By seeing a declining trend in inflation, it could give the Federal Reserve the necessary wiggle room to slow things down as far as monetary tightening is concerned.

If we were to pull back, I see plenty of support all the way down to at least the 4300 level at multiple points, offering a “buy on the dip” mentality going forward. Keep in mind that stock indices are designed to go higher over the longer-term, that’s why they are not equally weighted. In other words, you only need a handful of stocks to start rallying to really move this market. This is especially true when you look at the S&P 500, which has basically been moving higher on the “AI narrative” for a while now. While not as bad as the NASDAQ 100, the S&P 500 is certainly driven higher by just a handful of names.

Because of this, if you are trading individual stocks, you need to be much more selective but the rise of passive investing over the last decade has certainly made for an argument to simply buy and hold this index over the longer term. Now that it seems like we have momentum picking up, it looks like we are ready to go even higher. Yes, the economy does not necessarily support this move, but the economy and Wall Street have been completely disconnected over the last 15 years and it’s folly to think that they would suddenly play the same game anytime soon.

For a look at all of today’s economic events, check out our economic calendar.